budgeting advice needed on expanding herd of 6 to 25

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Anonymous

2 years ago we purchased an 80 acre farm and put a few bred cows with calves on it to keep the grass down and maybe make a little money. We are getting ready to go to the bank for an operating expense loan to purchase an additional 22 bred cows with calves. We need information from you experienced cattlemen and women so we can estimate returns and costs. Is there some kind of checklist to ensure that all returns and costs are included? We don't want to under or over estimate TOO much for the loan. We have plenty of pastures but no barn (deep valleys for windbreaks), nor the pens, corrals, chutes, scales, and all the other supplies that you need for a growing herd. Does this CattlePro software cover things like this? Is there other software or resources to gather this info from? We are on square one moving from having a few cows to going into the cattle business. Many Thanks!
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Anonymous

(User Above)":vi1hclr0 said:
: 2 years ago we purchased an 80 acre farm and put a few bred cows with calves on it to keep the grass down and maybe make a little money. We are getting ready to go to the bank for an operating expense loan to purchase an additional 22 bred cows with calves. We need information from you experienced cattlemen and women so we can estimate returns and costs. Is there some kind of checklist to ensure that all returns and costs are included? We don't want to under or over estimate TOO much for the loan. We have plenty of pastures but no barn (deep valleys for windbreaks), nor the pens, corrals, chutes, scales, and all the other supplies that you need for a growing herd. Does this CattlePro software cover things like this? Is there other software or resources to gather this info from? We are on square one moving from having a few cows to going into the cattle business. Many Thanks!<p>I just got back into the cattle business a few months ago. I spent apprx. 650.00 per head for 5 and 6 yr old bred cows(14 momas and 1 bull). I spent 900.00 on a 40 x40 catch pen made from drill pipe, wire panels,<br>and sucker rods( I did my own welding). Apprx 300.00 on assorted fencing supplies. 250.00 on fertilizer for apprx. 7 acres of hay ground. Hopes this helps.<p>
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Anonymous

How many head will your 80 support?? Profits in<br>the cattle bussiness are slim. Paying interest on <br>someone elses money only cuts into the profits. I<br>would recommend foregoing the loan & expanding on <br>a slower pace. This will also allow you time to find<br>equipment at auctions & build a corral. Depending<br>on your operation things like a scale are luxury items<br>not needed right away.
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Anonymous

(User Above)":3tasl9ta said:
: How many head will your 80 support?? Profits in<br>: the cattle bussiness are slim. Paying interest on <br>: someone elses money only cuts into the profits. I<br>: would recommend foregoing the loan & expanding on <br>: a slower pace. This will also allow you time to find<br>: equipment at auctions & build a corral. Depending<br>: on your operation things like a scale are luxury items<br>: not needed right away.<p>Just to add my thoughts I agree with Big Jake!<br>Six head on 80 acres are easy to handle, but add 20 or so more without holding pen or pens, no working alley and no headgate or squeezechute is asking for major headaches! <p>Doesn't have to be fancy, but you should be able to catch, holdem and workem without having a family reunion! To try to do otherwise may get the handlers or livestock hurt!<p>
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Anonymous

Jake, don't go buy an expensive cow or pair. They are double what you should pay for them, if you want to make money on them. Buy cow @$800, loan value from bank say 600, you put up the balance.<br>At $1.00 per day running costs you have $365 in a calf you've raised. Sell calf for $500 subtract run cost, $135 to be applied to cow cost. Leaves $665 still owed on cow, after one year. Market drops 1/2 and you have an older cow, which owes you more than the loan value. This isn't the way.<br>Sit in your local L/S barn and learn. Find an undervalue animal, and buy it.<br>
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